Moody’s Investors Service has upgraded the rating of the city of Athens from “C” to “Caa3”, meaning that there is a stable outlook. The credit rating business attributed the upgrade to the possibility of a default having been averted.
Specifically, in December 2013 the Municipality of Athens paid 675,000 euros in late payment interest fees to the ATEbank and managed to clear a 29.5 million euro loan it had taken out in 2003.
The credit rating agency notes that the ATEbank loan was a one-off and that Athens is typically on top of its loan obligations. Moody’s also noted that the Municipality’s debt stock was estimated to be 167 million euros in 2013. Moody’s also reported that the rating upgrade will demand the further improvement of finances and cash flow.
